Global Value Chains and the Environmental Kuznets Curve: Promotion or Hindrance?

Using two country panel datasets with two different magnitudes, we attempt to explore whether global value chain (GVC) participation affects the environmental Kuznets curve (EKC) turning point. Our analysis suggests that countries more deeply involved in GVCs are associated with lower EKC turning points. Moreover, based on an exploration of division heterogeneity, this finding may be potentially dominated by forward GVC division.

Automated summary

Using two country panel datasets of different magnitudes, this study explores the impact of global value chain (GVC) participation on the turning point of the environmental Kuznets curve (EKC). The analysis suggests that countries with higher involvement in GVCs tend to have lower EKC turning points. Additionally, the findings indicate that the forward GVC division may play a dominant role in this relationship.